Which of the Following Will Most Likely Increase Long-Run Aggregate

question 102

Multiple Choice

Which of the following will most likely increase long-run aggregate supply?

• A) an increase in the rate of investment
• B) an increase in resource prices
• C) an increase in the minimum wage
• D) an increase in the expected inflation rate

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Definitions:

Government Intervention

Actions taken by a government to affect or interfere with market activities or uphold laws for economic or social outcomes.

Markets Fail

Occurs when a market economy does not efficiently allocate resources, leading to outcomes like monopolies, public goods issues, or externalities.

Efficient Allocation

The distribution of resources in a way that maximizes the net benefits to society or the economy.

Efficiency

A measure of how well resources are used to achieve a goal, minimizing waste.